Finance Minister Žugić: Montenegro sees some positive macroeconimc trends in January-June 2013

Podgorica, Montenegro (18 July 2013) – In the period January–June 2013, Montenegro’s budget deficit amounted to EUR 78.56 million, representing a reduction of EUR 48.7 million compared to the same period in 2012 . The level of public debt was also reduced to 50.2% of GDP, Finance Minister Radoje Žugić told the press conference presenting the analysis of macroeconomic trends and structural reforms in Montenegro for the first 5 months of 2013.

In that period, Montenegro’s economy experienced economic growth of 4.3%, primarily thanks to favourable hydrological conditions and significantly lower rate of informal economy, he underlined.

This period showed good trends when it comes to inflation, as it was reduced from 4.3% in January to 3% in May 2013. The level of inflation in June was negative and prices were lower by 0.6% when compared to previous month, which speaks that increase in VAT rate didn't cause a wave of price increase as it was expected.

In the first 5 months of 2013, the employment rate increased by 3.9%, whereas the unemployment rate increased by 3.6%. Over that period, 174 000 citizens of Montenegro were employed, which represents the highest level of employment over the past several years, the Finance Minister noted.

He also added that the 5-month period saw the growth of loan activities at the rate of 6.4%.

In the sphere of real economy, liquidity trends continued to be negative and the number of companies which fail to perform their duties diligently increased to 23.4% of all companies, meaning that each fourth legal entity cannot maintain a sufficient level of liquidity, Minister Žugić told the press following the Cabinet meeting earlier today.